Credit card rates going higher

Honest, I’m looking for optimistic news to report. But it’s just not that kind of year.

Here’s a story from USA Today about how credit card rates are getting higher, even as the Fed is cutting minimum interest rates.

“Even as the Federal Reserve has cut interest rates, financial institutions have sharply raised rates for credit card customers — even those who pay on time — as they grapple with losses from other bad consumer loans.

This month, Washington Mutual (WM) told some credit card customers that it was raising their rates by as much as 100%. Discover (DFS) is lifting its penalty rate to 31%, effective May 1, and may apply that maximum to consumers who exceed their credit limit twice in a rolling 12 months.

Bank of America (BAC) raised rates for some customers in March — triple, in some cases, though spokeswoman Betty Riess says, “It would be very rare.”

All three institutions say they reserve the right to adjust rates when customers become higher risks. Keith Givens, a spokesman for Washington Mutual, also notes that the decision to raise some rates is “an indicator of overall deterioration in the economy.”